eBay Inc. (NASDAQ: EBAY) has been trading in a sideways manner since November 30th, between 63.15 and 68.10. That said, in the bigger picture, the stock remains below the prior upside support line drawn from the low of March 5th. Therefore, we see more chances for the stock to break the lower end of the short-term range, rather than the upside.
If so, market participants may allow a slide towards the 59.60 barrier, marked by the low of May 27th, the break of which could extend the fall towards the low of April 29th, at 54.80. If there are no buyers near that territory either, then we could see a test near the low of March 5th, at 51.50.
Turning our gaze to the daily oscillators, we see that the RSI turned down after hitting its 50 line, while the MACD, although slightly above its trigger line, shows signs of topping within its negative territory. Both indicators detect downside momentum and support the notion for further declines.
The outlook could become brighter again if we see a strong recovery back above 77.90. This could confirm the stock’s return back above the upside line taken from the low of March 5th, and may target the record peak of 81.30, hit on October 22nd. If market participants are not willing to stop there and decide to enter uncharted territory, we could see them pushing towards the psychological barrier of 85.00.
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